Slide 120 February 2008

NDIA 2008

Munitions Executive Summit“The Future is Now”

RDML James P. McManamonDirector, DON Weapons and Ordnance Safety (SEA 00V)

andNAVSEA Deputy Commander for Surface Warfare

(SEA 21)

20 February 2008

• Who is SEA 21• CNO Guidance • Service – Industry Partnership• Systemic Munitions Challenges• Navy’s SMCA Investment • Road Ahead

– Design and Construction– Modernization

AGENDA

Slide 320 February 2008

SEA 21?SEA 21?

• ASN (RDA) addressed span of control issues in PEO ships and requested options to reduce the PEO portfolio and achieve a more effective distribution of programs.

• SEA 21 formed to provide for new construction as well as modernization efforts.

• Platform is a means of conveyance to put the ordnance on target– Mission success highly dependant upon quality ammunition,

in the right amounts, at the right locations, when required.• Navy highly values the conventional ammunition

industrial base and its preservation.

Slide 420 February 2008

CNOCNO’’ss GUIDANCEGUIDANCE

• Conduct the full range of operations from combat to humanitarian assistance.

• Provide presence and operational flexibility with forward deployed maritime forces.

• Deter and, if deterrence fails, win our nations wars.

• Foster and sustain cooperative relationships with an expanding set of allies to enhance global security.

Protect maritime freedom and address threats to peace

Slide 520 February 2008

Service Service -- Industry PartnershipIndustry Partnership

The Good - A collaborative government/industry forum to discuss common

issues and concerns– Adequacy in performance of munitions in theater

• Quality munitions• RDDs being met• Best military force in history due to strength of industrial base

– Applaud the use of LEAN/Six Sigma practices• Navy Munitions Command • Smoke grenade

– Transition to SMCA for centralized management and scales of economy

The Bad– GWOT costs compete with force structure requirements – BRAC transition challenges– Political direction

Slide 620 February 2008

TQL/TQMISO 9000

1990

1999

20002001

2003

2002

2004

ASN RD&A Directs Use of LSS

DEPOTS and SHIPYARDS COMMENCE

LEAN

NAVAL AVIATION ENTERPRISE

LEAN Events on Three AIRCRAFT CARRIERS

NAVSEA Task Force Lean

NAVAIR HQ AIRSPEED

DoD Senior Leadership Directs Use of LSS

Navy and USMC Industrial Base Demonstrates Output From LSS

2005

Transactional Projects Yield

Output

2006

DoN Lean Six Sigma (LSS) Journey

SECNAV Directs roll-out across allDoN Service, Support and Transactional Activities.

2007

Slide 720 February 2008

Department of the Navy Objectives for FY 2008 and BeyondDepartment of the Navy Objectives for FY 2008 and Beyond

Objective 1.h. to "Accelerate the integration of Lean Six Sigma across the DON to develop a culture of continuous process improvement. Develop Standard Operating Procedures to

leverage benefits resulting from these efforts with results clearly depicted in the SECNAV Monthly Review report (Lead: Each Organization's Leader)"

20 February 2008

DoN Lean Six Sigma Three Year Action PlanPhase I Year 1

CY06Phase II Year 2

CY07Phase III Year 3

CY08Leadership

• Leadership Kick-off and monthly progress meetings

• Balance process metrics across DoN objectives & goals

• Plan for XX% reduction in overhead through CY08

• NSPS SES / Flag fitness report bullet that recognizes LSS contributions

• Accelerate the journey for those who have started (AIRSpeed, Task Force Lean, et. al.) and report out financial results

• Start the journey with enabling service, support and transactional functions (i.e., FIN, HR, SC, IT, etc)

• Take XX% of overhead cost out of the Department

• Accelerate integration w/ industrial base and be accountable for financial harvesting

• Re-align to DoN 07 objectives & goals, and measure LSS output to DoN 06 objectives and goals

• All military and civilian performance evaluations and fitness reports recognize LSS contributions

• Take an additional XX% of overhead cost out of the Department

• Re-align to DoN 08 objectives & goals, and measure LSS output to DoN 07 objectives and goals

• Accelerate Enterprise maturity

Work Product

• High impact core value streams are identified, mapped, and all applicable personnel are prepared to DMAIC

• Accelerate Integration of organic Supply & Industrial Base with external suppliers (i.e., private industry, DLA)

• Identify where LSS applies to the Warfighter (i.e., war- game planning & events)

• Identify and clean legacy data bases for conversion to Navy ERP

• High impact core value streams are DMAIC

• Continuous Improvement of those activities that started before Jan 06

• 100% of all major Defense contracts awarded to industry will contain a LSS incentive clause

• Introduce Malcolm Baldrige criteria

• High impact core value streams are revisited

• Service, support and transactional functions are in a Continuous Improvement closed loop

• 25% of extended (with industry) value chains have been leaned out

Education and Training

• 1,000 Black Belts certified

• 2,000 Green Belts certified

• 25% of GS-15 /06 and above complete Champion training

• 1,000 additional Black Belts

• 4,000 additional Green Belts

• 100% of GS-15 /06 and above complete Champion training

• Train additional Black Belts equal to 1% of affected workforce

• Train additional Green Belts equal to 4% of affected workforce

Slide 920 February 2008

In-Patient CareIn-Patient Care Out-Patient CareOut-Patient CareInitial Treatment& TransportationInitial Treatment& Transportation

Long-term Care & Follow-up

Long-term Care & Follow-up

ReceivingSite

Treatment Evaluation Treatment Evaluation Post Care

In Scope

Partially in Scope

Stabilize TransportX% ~% in this Path

II IIII IIIIII IVIV

OEF

/OIF

Flee

t

Member & Family Support

Administrative Support

Cas

e M

anag

emen

t

LIMDU

OngoingActive/

ReserveCare

Receiving MTF

Other MTF

PTVA

Civilian Facility

Clinical Evaluation

Eval

MedCenLandstuhl

Transport(Ramstein)

Corpsman/ Aid Station

BAS/FRSS/EMF(Navy)FRST/CSH

(Army)

EMSF(Air Force)

RTD

Treatment Protocol A

Treatment Protocol B

Bas

ed o

n co

nditi

on

& c

apac

ity

VA CenterC

linical Evaluation

DoD Med Assets

PTVA

Civilian Facility

VA Center

In-home CareMay

Util

ize

Mul

tiple

Site

s

Acute

Injuries

MEDEVAC

Referral for Eval of Possible Injury(including TBI, PTSD)

To In or out-patient care

MEB – referred anytime

PEB

RTD RTD

MEB/PEBProcess

Red CrossVA Assistance

CACODOL Assistance

Fisher HouseNMC Relief

FSPSSA

Dept of Ed.State & Local

”Case Manager Roles”

Medical Records/AccessPersonnel Transactions

Pay, Special Pay, & Benefits TRICARE Billing & Payments

MEDHOLDFacility/NMPS

Mild/ Moderate

or No Apparent

Injury

Direct to Out-Patient

RTD

RT D

Return CONUS

With Unit

Separate

1%

99%

25%

75%

RT D

Wounded Warrior RegimentSafe Harbor

MTF Med CMLocal Med CMCACO

PEBLO/Diasability Counselor VA

Civilian or DOD Local Care

Transport(Various)

AcuteInjuries

Representati ve Orgs.

Med. Dept Rep. Pri. Care ManagerSocial Workers

Navy/Marine LO

Convalescent Leave /Light Duty

PDHA/PDHRA

PCR TEMADD TEMDU ORDERS: RETIRE / SEPARATE

STOP COMBAT PAY START CIP BAH CHANGES STOP CIP AWARD TSGLI

Pay & Personnel Commands

Comprehensiv e In-Patient

Rehab

Post Acute

Resident Rehab

• Independent / Supported

Living• Nursing

Care

VA Process

LIMDU

NMPS

PersonalResidence

Fleet & Family

Support

Comprehensive Casualty Care High Impact Core Value Stream

Slide 1020 February 2008

Lean Six SigmaLean Six Sigma

• NMC transformation going well– FY07 Savings goals exceeded– LSS Deployment goals progressing

• Current initiatives – Ship Loads and Offloads

Improve service and reduce duration– General Purpose Bomb Build-up

Reduce assembly time– Rail Logistics

Reduce cost, increase flexibility and efficiency

CNO Challenge Reduce Fleet Ordnance Support (FOS) costs, with no impact on readiness, by 2% in FY10 and an additive 2% each year through the FYDP to reach 12% by FY15

Stage equipment at pier/magazine

Schedule

Perform initial receipt into OIS-R D-2-D

Physically offload ship

Offload Ship

Stow

AMMO from Pier/Truck

ArrivalConference

Scan material

Load truck

Perform 626 inspection

Transport truck to offload

point

OffloadTruck

Where?

Offload Truck

Load Stationtruck

Scan material

Transport truck to offload

point

Offload truckinto Mag

Scan Material

StowMaterial

ReconcileScanner

Descrepancies

Receive Notification

GenerateScheduling

Docmentatiion

PerformReceipt

inspection

Perform initial receipt into

OIS-R

Perform Receipt

Inspection

Perform Receipt

Inspection

Perform Receipt ADJ

OIS-R

Conduct offload

Planning

Ship?

YesNo

Transfer Point

Stow Location

Current State (As-Is) Value Stream Map for Pier

Slide 1120 February 2008

Systemic ChallengesSystemic Challenges

• Storage– Inert, Obsolete, or Unused assets

• 16” propellant bags, cluster munitions, mines, etc– Demil stockpile footprint vs. Services’ planned receipts

• Transportation and receipting retail assets– Temporary holding areas, safe havens, security

• Interoperability– HERO, IM, compatibility of stowage, etc.– Joint test criteria and requirements– Joint Service/Industry safety reviews

• Maintenance– Major/minor work on stockpile assets – Service life extensions on missile systems

Slide 1220 February 2008

NavyNavy’’s SMCA Investments SMCA Investment

FY07 ‐ FY13 Navy SMCA Procurementsby Ammunition Family

Grenades, 1%Mines, 0.1%Demo materiel, 3%Fuzes, 2%Misc (Propellant), 

3%

Pyrotechnics, 1%

Bombs, 33%

Navy Gun, 4%

Medium Caliber, 22%

Small  Arms, 31%

GWOTAnnual training

RDT&E International Programs

TodayToday’’s Requirements ($1.3 B)s Requirements ($1.3 B)

Slide 1320 February 2008

Road AheadRoad Ahead

– Naval Forces Structure• Today

– 11 Strike groups (10 based in U.S.; one forward deployed)– Fleet Response Plan

» Six ready for deployment within 30 Days at any given time.» Additional two groups deployed within 90 days.

• 2007-2008 CNO Guidance– 313 ships and 3800 aircraft maintained in Naval Service by 2020

– Combat Systems evolution• ‘System of systems’ with BMD efforts and Net-Centric warfare• Pinpoint accuracy with prescribed collateral damage• Common weapon systems across new construction platforms• Increasing use of UAVs• Directed energy weapons

– Operational Safety• Naval platforms becoming multi-mission and multi-Service• Explosives safety considerations: HERO, IM, etc.• Environmental stewardship

Slide 1420 February 2008

TomorrowTomorrow’’s Navy in design and constructions Navy in design and construction

Concept Refinement

Technology Development

System Development & Demonstration

Production& Deployment

Operations& Support

MPF(F)

LHA 6

LCS

DDG 1000

LPD 17

T-AKE

LHD 8

Small Boats

CG 47

DDG 51

JHSS

JMAC

LCAC SLEPCG(X)

JCC(X)

LSD 49

Slide 1520 February 2008

CG(X)CG(X)• Program Capability

– Serve as highly capable surface combatant tailored for Integrated Air and Missile Defense and Joint Air Control Operations

– Provide airspace dominance and Sea Shield protection to all joint forces in Sea Base and APOD/SPOD

• Way Ahead– CG(X)/Maritime Air and Missile Defense of

Joint Forces Analysis of Alternatives (AoA) is completed and is being staffed by Navy leadership

– Milestone A decision is expected in Q2 FY08– First ship delivery is 2017 with IOC in 2019– Premature to commit to any given platform

or design decisions until Navy Leadership recommends a preferred alternative to OSD

Combat Systems TBD

Slide 1620 February 2008

FREEDOM (LCS 1) ClassFREEDOM (LCS 1) Class

FREEDOM (LCS 1)

INDEPENDENCE (LCS 2)

• Navy Program Review– Both design approaches satisfy fleet-

validated need– For a 55-ship class, the critical issue is

cost of production– Need to maximize efficiencies in

production and minimize operation and maintenance costs

• Way Ahead– Deliver LCS 1 and 2– Contain cost growth within budget– Mature key technologiesShip Weapon System:

MK 48 GWS (57mm BOFORS)

Mission Module Weapon Systems:MK 50 GWS (30mm variant) NLOSRAMICSAMNSMH-60 Helo R/S Variants VTUAV

Slide 1720 February 2008

ZUMWALT (DDG 1000) ClassZUMWALT (DDG 1000) Class

• Designated DDG 1000 ZUMWALT Class April 06

• Detail Design contracts awarded in Aug 06 to NGSS and BIW

• Mission System Equipment contacts awarded to Raytheon (Jan 07) and BAE (June 07)

• Navy re-sequenced first ship set of Mission Systems Equipment to BIW– Contracts awarded for long lead-time

material Nov 07• Construction contracts to be awarded

in 08 to NGSS and BIWWeapon Systems:

MK 57 Vertical Launch System (PVLS)Advanced Gun System (155mm) MK 48 GWS (57mm BOFORS)

Slide 1820 February 2008

SummarySummary

• DON is active industrial base partner– Heavy reliance on ammunition wholesale base for annual

training and contingency re-supply– Active supporter of the U.S. Army’s Ammunition Enterprise– Closest collaboration ever with PEO Ammo– BRAC transition

• Interoperability of Services imperative– Common visibility of ordnance items through info systems– Requirements collaboration– Joint design and development of today’s weapon systems and

platforms– Safety considerations (HERO, IM, etc.)– Standardization of joint criteria/test requirements

PEO Cross-Service Panel

Slide 1920 February 2008

BACK-UP

Slide 2020 February 2008

LHA 6 / LHD 8LHA 6 / LHD 8

• LHA 6 $2.4B construction contract awarded June 07

– Same gas turbine propulsion as LHD 8– Expanded aviation capabilities:

(12 MV-22s, 4 CH-53s, 4 AH-1s, 3 UH-1s & 6 F- 35Bs)

• LHD 8 under construction– Delivers Nov 08

Ship Weapon Systems:Rolling Airframe MissileNULKASRBOC

Slide 2120 February 2008

SAN ANTONIO (LPD 17) ClassSAN ANTONIO (LPD 17) Class

• USS SAN ANTONIO (LPD 17)• Delivered Jul 06• Commissioned Jan 06

• NEW ORLEANS (LPD 18) – Delivered Dec 06– Commissioned Mar 07

• MESA VERDE (LPD 19)– Delivered Sep 07– Commissioned Dec 07

• GREEN BAY (LPD 20)– Delivery in 08

• NEW YORK (LPD 21)– Launched Dec 07

• SAN DIEGO (LPD 22) – Keel laid May 07• ANCHORAGE (LPD 23) – Keel laid Sep 07• ARLINGTON (LPD 24) – Started fab. Aug 07• SOMERSET (LPD 25) – Start fab. 08

Ship Weapon Systems: Mk 46 Mod 1 GWS (30MM)RAMNULKASRBOC

Slide 2220 February 2008

Mine, Amphibious, Auxiliary, Command ShipsMine, Amphibious, Auxiliary, Command ShipsMine, Amphibious, Auxiliary, Command Ships

CLASS PMA DPMA ISRA SRA DSRA EDSRAAS 39 1LCC 19 1LHA 1LHD 1 2 1 1LPD 4 3LSD 41 2LSD 49 1 1MCM 1 5 1 1MHC 51PC 1

FY07 CNO AVAILABILITIES

TOTAL FY07 CNO AVAILABILITIES 21

Maintaining, modernizing and improving the performance and

readiness of in-service ships

Focused on efficient repeatable processes that enable continuous

improvement

SHIPS AND PLATFORMSLPD 4 Class – (7) MHC 51 Class – (4)LSD 41 Class – (8) PC Class – (13)LSD 49 Class – (4) AS 39 Class – (2)LHA 1 Class – (3) LCC 19 Class – (1)LHD 1 Class – (7)MCM 1 Class – (14) Dry Docks – (9)

LPD 17 Class (2) – Fleet IntroLHD 8 (1) – Fleet Intro

10 Ship Classes72 Ships / Dry Docks

3 Fleet Intro

Slide 2320 February 2008

InIn--Service Surface CombatantsService Surface Combatants

Sustain, modernize and increase the war-fighting capabilities of

surface combatants at home and forward deployed

Focused on efficiency, readiness,

evolution and continuous

process improvement

SHIPS AND PLATFORMS

DDG 51 Class – 48 CG 47 Class – 22FFG 7 Class – 31 LCS Class – 0

4 Ship Classes101 Ships

4 Fleet Intro

CLASS SRA DSRA ESRA EDSRACG 47 7 2 1 5DDG 51 24 5FFG 7 20 1

65

CLASS SRA DSRA DMP EDSRACG 47 8 1 3DDG 51 26 6FFG 7 15

59

FY07 CNO AVAILABILITIES

TOTAL FY07 CNO AVAILABILITIES

FY08 CNO AVAILABILITIES

TOTAL FY08 CNO AVAILABILITIES

Slide 2420 February 2008

CRUISER UpgradesCRUISER Upgrades

SUW USW AW

SPQ-9B: • Pulse Doppler Radar• Increases capability against small targets in

clutter environment (Littoral)• GWS Sensor

Open Architecture Computing Plant:• Improves ability to insert new technologies into

platform

AWS/SPY:• Improved computing and display capabilities• Improves operators ability to recognize surface

threats, manage surface picture and engage required targets

• SPY Horizon Track While Scan, for B/L 3&4, will improve capability to detect small craft and decrease potential to misidentify such targets as clutter

MK-34 GWS:• Combination of MK-160, Mod 4 Gun and EOSS• Increases number of options available to operator

for detection and engagement of surface threat• Digital fire control and gun improve accuracy of

first shot

CIWS BLK 1B:• IR Sensor• Inherent anti-surface capability

SPQ-9B:• Pulse Doppler Radar• Improved capability to detect and track low-flying, high

speed, small RCS ASCMs in heavy clutter• Integrated to cue SPY Radar and improve overall AWS

capabilities against the ASCM threat

AWS/SPY:• Improved computing and display capabilities• Faster processing and greater track capacity• SPY OA features improved algorithms for AW processing• Improved displays increase operator’s ability to maintain

situational awareness and improve ability to discern and act on air threat

CEC:• Fire control quality data link• Allows utilization of off ship sensor data• Allows for greater force-wide engagement

ESSM: • Quick Reaction, relatively short ranged missile• Provides increased defense in depth in conjunction with

SPQ-9B, upgraded AWS, CEC, SM-2 and CIWS

CIWS BLK IB:• Increased probability of kill due to tighter firing pattern

SQQ-89A(V)15 (CG 59-73):• Upgrade for Baselines 3&4• Increases ability to detect/engage in both

open and shallow water• Improved computing and displays• Multi-Function Towed Array (MFTA) allows

for improved passive ops and bi-static sonar operations

• MFTA acts as receiver• SQS-53 is transmitter

• Improved torpedo detection capabilities

Modernized Cruiser: Faster Reaction and Improved Engagement Against the Three Dimensional Threat

MK-116 MOD 7 Upgrade (CG 52-58):• Improved reliability• Increase in level of integration with AWS• Mitigates obsolescence issues

Slide 2520 February 2008 Slide 25

DDG 51 UpgradesDDG 51 Upgrades

SUW

USW

AW

Open Architecture Computing Plant:• Improves ability to insert new technologies into

platform.

AWS/MULTI-MISSION SIGPRO:Improved computing and display capabilities

• Improves operators ability to recognize surface threats, manage surface picture and engage required targets

• Add Aegis Littoral Processor to system allowing discerning of air targets against land heavy background clutter along with improved capability to detect small craft and decrease potential to misidentify such targets as clutter.

MK-160 FCS:• Increases number of options available to operator

for detection and engagement of surface threat• Digital fire control and gun improve accuracy of first

shot

CIWS BLK 1B:• IR Sensor• Inherent anti-surface capability

AWS/MULTI-MISSION SIGPRO:• Improved computing and display capabilities• Improved computing and display capabilities• Improves operators ability to recognize surface threats,

manage surface picture and engage required targets• Adds BMD mission to class.• Add Aegis Littoral Processor to system allowing

discerning of air targets against land heavy background clutter along with improved capability to detect small craft and decrease potential to misidentify such targets as clutter.

CEC:• Fire control quality data link• Allows utilization of off ship sensor data• Allows for greater force-wide engagement

ESSM: • Quick Reaction, relatively short ranged missile• Provides increased defense in depth in conjunction with

SPQ-9B, upgraded AWS, CEC, SM-2 and CIWS

CIWS BLK IB:• Increased probability of kill due to tighter firing pattern

SQQ-89A(V)15:• Upgrade for Flight I and II• Increases ability to detect/engage in both

open and shallow water• Improved computing and displays• Multi-Function Towed Array (MFTA) allows

for improved passive ops and bi-static sonar operations

• MFTA acts as receiver• SQS-53 is transmitter

• Improved torpedo detection capabilities

Modernized DDG 51: Faster Reaction and Improved Engagement Against the Three Dimensional Threat